Domestic airlines reel under rising fuel costs
Nigerian airlines are under pressure as aviation fuel (Jet A‑1) prices hit N2,557 per litre amid escalating US-Israel-Iran tensions.
Sokoto reports the highest price at N2,557 per litre, followed by Kano at N2,554. Port Harcourt and Asaba are at N2,543, Abuja at N2,538, Enugu N2,535, Warri N2,530, Anambra N2,529, while Lagos is the lowest at N2,500. The new rates took effect on March 20, 2026.
Fuel now accounts for 40–55 per cent of operating costs, and a 100 per cent surge has forced carriers to absorb heavy losses.
According to an airline executive, the drop in passenger traffic is intensifying the challenges faced by carriers. “We are in a very difficult situation and most Nigerian airlines are losing money. When fuel alone consumes more than half of what we earn from ticket sales, there is no path forward other than adjusting fares or grounding aircraft,” he said.
Domestic flight fares currently average N92,000, but airlines warn that further increases in fuel costs could make fare hikes unavoidable.
The Federal Competition and Consumer Protection Commission (FCCPC) has also warned airlines against arbitrary ticket price hikes, signaling possible sanctions.
Foreign carriers are facing similar pressures. Some have reduced capacity on major routes or deployed smaller aircraft. Air France-KLM CEO Ben Smith noted that while Europe currently has sufficient fuel stocks, regions dependent on Gulf supplies, such as South-east Asia, could face shortages. “If there’s no fuel, you can’t fly,” he said.
Rising Jet A‑1 prices and declining passenger numbers underscore the growing financial strain on both domestic and international airlines operating in Nigeria.
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